SB2729_S_(Cmte_Sub)_Amend

SECTION 1. (1) The Department of Finance and Administration may lease certain state-owned real property formerly known as the "Sun-n-Sand Property," located in the City of Jackson, Mississippi. The property being more particularly described as follows:

Property known as the Sun-n-Sand Property and identified as: Hinds County Parcels 80-54, 80-55 and 80-55-1 for a total of 5.28 acres more or less bounded by Lamar Street on the East; Hamilton Street on the South; Bloom Street on the West and Oakley Street on the North less Parcel 521-80-56 which is not a part of this property.

(2) The real property and the improvements thereon, described in subsection (1) of this section, shall be leased for not less than the current fair market value as determined by the average of at least two (2) appraisals by qualified appraisers, who shall be selected by the Department of Finance and Administration and shall be certified and licensed by the Mississippi Real Estate Appraiser Licensing and Certification Board. In no event shall the lease payment be less than the fair rental value determined by the average of appraisals of the Department of Finance and Administration, but not less than One Hundred Fifty Thousand Dollars ($150.000.00). The lease term shall be for a period not to exceed forty (40) years with a lease extension not to exceed ten (10) years at a reappraised fair market value of the real property. The Department of Finance and Administration is authorized to negotiate all aspects of any lease and any terms and ancillary agreements pertaining to any lease as may be reasonably necessary to effectuate the intent and purposes of this act and to ensure a fair and equitable return to the state. Any lease shall, at a minimum, provide for the recovery of the total amount paid by the Department of Finance and Administration plus any direct or indirect costs, including legal fees incurred by the State of Mississippi related to the lease of the property, and specific performance requirements, including approval of the construction documents by the Department of Finance and Administration, a construction period not longer than two (2) years from the date of the lease, a forfeiture process for not completing the project in a timely manner according to the approved plans which will include complete forfeiture of all leasehold improvements and termination of the lease if the project is not issued a certificate of occupancy for the majority of the project within the two-year construction phase, maintaining the current large sign located on the property and such other provisions as determined by the Department of Finance and Administration.

(3) All monies derived from the lease of the property authorized in this section and used to reimburse the Department of Finance and Administration for fees paid to the development facilitator as provided in subsection (8) of this section shall be deposited into the State General Fund.

(4) (a) The property described in subsection (1) of this section shall be leased to result in the highest and best use of the property; provided that such redevelopment shall be designed and implemented to include commercial and/or residential and/or retail space and to preserve and enhance the existing educational, residential and commercial integrity of the surrounding community, as well as the historical integrity of the property, as determined by the Department of Finance and Administration.

(b) Any contract for the lease of the property shall include a provision that provides for an adequate number and location of parking spaces for state employees as determined by the Department of Finance and Administration, which shall in no event be less than two hundred (200) parking spaces.

(c) Any contract for the lease of the property shall include a provision that requires the lessee to complete construction within a specific time to be determined by the Department of Finance and Administration but no later than December 31, 2022.

(d) It is the intent of the Legislature that the property will be leased for the benefit of creating value while also preserving the local environment and promoting growth in the area.

(5) The Department of Finance and Administration shall issue a request for proposal no later than June 1, 2020, which requests shall be due by August 1, 2020, and shall review and consider all proposals for purchase or lease of the property described in subsection (1) of this section in light of all factors which the department deems relevant, including, without limiting the generality of its consideration, the following:

(a) The proposed lease price of the property;

(b) The proposed use or uses of the property;

(c) The cost, scope and scale of the proposed development, the amount of the investment to be made by the proposed lessee, and the financial ability to perform by the lessee or a guarantor as well as sufficient financing to complete the proposed project of the property;

(d) The projected impact of the proposed development on the City of Jackson and the State of Mississippi, including anticipated or projected tax revenue to be generated as a result;

(e) The projected timetable for the development; and

(f) Parking needs of state employees.

(6) The State of Mississippi retains the exclusive right to terminate the lease of the property if the lessee has not received all construction permits and commenced construction thereon before March 31, 2021, or if the lessee does not complete construction within the time required under subsection (4)(c) of this section. The State of Mississippi retains the exclusive right to terminate the lease of the property if the lessee attempts to assign its rights to lease the property before the completion of construction. If the lessee desires to assign the lease after construction, the state shall have a right of first refusal for the assignment which shall be in writing containing the terms of the proposed assignment under the same terms and conditions for a ninety-day period beginning with the written receipt by the Department of Finance and Administration of notification of a possible assignment.

(7) The State of Mississippi shall retain all oil, gas and mineral rights to the property leased under this section.

(8) The Department of Finance and Administration is authorized to contract with a development facilitator with expertise in mixed-use developments with commercial, office and residential components to assist the State of Mississippi in identifying potential developers of the property described in subsection (1) of this section and in selecting the development plan and developer for the property that best represents the intent of the Legislature as expressed in this act. The Department of Finance and Administration is authorized to pay for reasonable contractual services from fees charged by the Department of Finance and Administration and to be reimbursed from income generated by any lease of the property.

(9) If the property described in subsection (1) of this section is leased, the Department of Finance and Administration is authorized to manage and collect through the developer/owner rental and lease payments of ground leases for any residential or nonresidential property lease authorized under the authority of this act. The Department of Finance and Administration may charge a fee not to exceed the costs of administering this act, any leases and any other ancillary agreements executed hereunder.

SECTION 2. This act shall take effect and be in force from and after May 1, 2020.